Rent-to-own News - UPDATED: Consumer Rental Purchase Agreement Act introduced with record 41 original co-sponsors

U.S. Rep. William Lacy Clay.

U.S. Congressman William Lacy Clay (D-MO) today introduced HR 1744, The Consumer Rental Purchase Agreement Act, on the House floor with a record 41 original co-sponsors already signed on in support of the legislation that would define the debt-free rent-to-own transaction in the federal code as a lease, not a sale, and provide a slew of consumer protections.

At least 34 of the 41 original co-sponsors supported the bill last session. The additional co-sponsors have chosen to support the bill early due in large part to the cool guidance of Clay, according to APRO President "Tiger" John Cleek.

"Congressman Clay is the greatest champion the rent-to-own transaction has ever had," Cleek said. "This bill will create a number of consumer protections and provides a "floor" not a "ceiling" for regulations. If some states want to add additional restrictions they can, but this bill raises consumer protections in 33 states. As an industry, we are quite comfortable with that."

The bill remains unchanged from last session and would not affect state statutes that have consumer protections that are more stringent than the bill proposes.

Last session, the bill attracted 99 co-sponsors though it entered the Congressional Record with only five. Given Congress' and the administration's interest in improving the country's financial regulatory framework combined with stifled consumer credit and rising unemployment, industry optimism is high.

"I think our chances of passing this bill this session are excellent," Cleek said.

In addition to Clay's leadership in the House, Richard May, public affairs director for the Association of Progressive Rental Organizations (APRO) -- the trade association for the rent-to-own industry -- said the grassroots advocacy of hundreds of dealers nationwide is due ample credit for the bill's impressive introduction.

At the end of the day, May says, it will be this same energy -- that of independent dealers reaching out to the nation's lawmakers -- that will make or break the bill's progress.

"This is a call to action for rent-to-own dealers around the country to get active as constituents, call your representatives now and urge them to support this bill," May said. "Attend the APRO Legislative Conference (April 21-23) and make a difference for your industry. This could be our best opportunity in years and it won't come around again for a long time."

With the introduction of the bill, May said the industry's legislative focus will now switch to the co-sponsor strategy through APRO's Legislative Conference and grassroots communications. While co-sponsors are recruited, Rep. Clay will try to schedule a Financial Services/Financial Institutions and Consumer Credit Subcommittee hearing and/or mark up.

“Mark up” means a vote on the bill with the potential of making changes through the subcommittee process.

Additionally, when Senate sponsor Sen. Landrieu drops the bill in the Senate -- a development expected in coming weeks -- grassroots strategy will also focus on generating Senate co-sponsors in anticipation of a hearing in the Senate Banking Committee.

Dealers are urged to visit APRO's grassroots instructional Web page to learn more about how to take action and support the Consumer Rental Purchase Agreement Act. APRO has provided a number of powerful tools for dealers whether veteran advocates or new to the industry.

While 47 state legislatures have defined rent-to-own as a lease, the U.S. Congress remains one of the last arenas to define it. With a thriving industry, competition will be enhanced and, as a result, rent-to-own’s more than 3.2 million customers will continue to see improvements in service, pricing and payment options.

Passage of a federal rent-to-own bill will provide security for the $6.3-billion industry to expand and create jobs. Federal legislation will secure the future of rent-to-own businesses—both small and large—and more than 50,000 employees who work within the industry.

With industry growth, the value of rent-to-own will increase on Wall Street and provide lending confidence for small businesses nationwide.

Read more about the history of federal rent-to-own legislation here.

Read about the Consumer Rental Purchase Agreement Act's benefits to consumers and job growth here.

Learn more about APRO's 2009 Legislative Conference here.

Register for the conference now. 

A complete list of the original co-sponsors supporting the bill at it's introduction in the U.S. House of Representatives today is as follows:

1.    SAM GRAVES  (MO-06)
2.    JO ANN EMERSON (MO-08)
3.    JEB HENSARLING (TX-05)
4.    LYNN JENKINS (KS-02)
5.    PETE SESSIONS (TX-32)
6.    GENE TAYLOR (MS -04)
7.    BLAINE LUETKEMEYER (MO-01)
8.    BRAD SHERMAN (CA-27)
9.    TIM HOLDEN (PA-17)
10.    ZACHARY SPACE (OH-18)
11.    SAM JOHNSON (TX-03)
12.    BOB GOODLATTE (VA-06)
13.    TODD AKIN (MO-02)
14.    WALTER JONES (NC-)
15.    LAMAR SMITH (TX-21)
16.    RALPH HALL (TX-04)
17.    JERRY MORAN (KS-01)
18.    TODD TIAHRT (KS-04)
19.    MIKE ROSS (AR-04)
20.    DENNIS MOORE (KS-03)
21.    RANDY NEUGEBAUER (TX-19)
22.    EDDIE BERNICE JOHNSON (TX-30)
23.    HENRY C. JOHNSON JR. (GA-04)
24.    IKE SKELTON (MO-04)
25.    KENNY MARCHANT (TX-24)
26.    DANNY K. DAVIS (IL-07)
27.    EMANUEL CLEAVER (MO-05)
28.    JOHN DUNCAN JR. (TN-02)
29.    AL GREEN (TX-09)
30.    ALCEE HASTINGS (FL-23)
31.    SUE MYRICK (NC-09)
32.    SANDFORD BISHOP (GA-02)
33.    JERRY COSTELLO (IL-12)
34.    GREGORY MEEKS (NY-06)
35.    HENRY CUELLAR (TX-28)
36.    PAUL KANJORSKI (PA-11)
37.    MIKE ROGERS (AL-03)
38.    BARON HILL (IN-09)
39.    FRED UPTON (MI-06)
40.    STEVE LATOURETTE (OH-14)
41.    SOLOMON P. ORTIZ (TX-27)
 

For more information contact Richard May at 800/204-2776 ext. 104.